p16 comment Dec18 16/12/09 19:01 Page 16
news comment
ttglive.com
Kane Pirie Travel Republic
“The malaise at BA is not
unique and agents booking
with any scheduled airline
should consider the risks”
A
s 2009 draws to a close the mood looks to drive down costs and improve efficiency,
in the industry for 2010 is positive. including plans to shed nearly 5,000 jobs, have
Pre-Christmas sales on the high not met with universal applause.
street suggest the long-awaited No surprise there, and I feel sorry for those
return of the shopper, and the housing market in the firing line facing redundancy. But isn’t
continues to recover from previous losses. this a case where some casualties are essential
Few are expecting the national economy to to protect the overall business, including the
flourish next year, but we will at last come out workforce as a whole?
of recession. Outbound leisure in particular will Unite, the union at the heart of the row
benefit. There is pent-up demand, as those who with BA, clearly thinks not. The strike Unite
economised this year are determined to soak members voted for threatened to upset
up some sunshine overseas. I even think many people’s plans for Christmas and
England will win the World Cup! to hurt BA to the tune of £30 million
There is plenty to look forward to a day, not to mention damage to
in 2010, but businesses are still the brand and business. Prolonged
struggling. British Airways lost industrial action would create a
over £400 million in the significant threat to a business
year to March 2009 and battling to survive.
close to another The malaise at BA is not unique
£300 million in and agents arranging bookings with
the six months all scheduled airlines (including
to September. low-cost) should consider the risks.
Few firms can The Department for Transport
afford to lose consultation document on the Atol
£0.7 billion over protection regime dismissed a mooted
18 months, and BA extension of the state-run scheme to cover
now labours under a all flights. The charge-back protection on
mountain of debt, nearly UK-issued credit (and some debit) cards puts
£4 billion. Although cash reserves the liability on the “merchant” (retailer)
remain substantial (£1.5 billion as who took the customer payment.
at September 2009) BA urgently As a result, the failure of a large airline
needs to return to profitability. in 2010 could spark wider problems for
As Willie Walsh put it retailers. Merry Christmas!
earlier this year, “short-term
survival” is the key focus. The Kane Pirie is managing director of
resultant changes at BA as it Travel Republic
16 18.12.2009
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56